What happens if your energy retailer goes out of business

Elysian Energy customer transfer

01 September 2022

We have initiated the ‘retailer of last resort’ process that will automatically transfer customers from failed retailer Elysian Energy Pty Ltd (Elysian) to other retailers in Victoria to provide for the continued supply and sale of electricity services.

Affected customers will be contacted directly by their new retailer with information about the new arrangements including options for ongoing supply and who to contact for more information or in the event of any disputes. 

Customers requiring life support equipment are urged to inform their new retailer as soon as possible.

Customers transferred to a retailer of last resort can change this arrangement at any time. They can choose to enter a new contract with the retailer of last resort or choose a new retailer that services their area.

You do not need to worry about your electricity or gas supply being cut off, even if your energy retailer goes out of business.

Energy is an essential service, so are arrangements in place to ensure supply of electricity and gas continues, even if a retailer is unable to provide it.

Read our media statement.

Arrangements are in place to ensure your electricity and gas supply continues even if your current retailer can no longer provide it.

Retailer of last resort

Each property has a designated ‘retailer of last resort’ based on which energy distribution area it is located in.

Your retailer of last resort is required to provide you with electricity or gas if your existing retailer cannot do so.

This could occur if:

• we revoke the energy retailer’s licence
• the retailer does not have sufficient funds to purchase electricity or gas from the wholesale market and has their right to do so suspended or revoked by the Australian Energy Market Operator (AEMO).

Depending on where your property is, your retailer of last resort will be either:

• AGL
• EnergyAustralia
• Origin Energy.

In the unlikely event that a designated retailer of last resort fails, customers will be divided between the other two retailers of last resort.

Electricity retailer of last resort

Find out which electricity distribution zone you are in using the Victorian Government's electricity distribution zone map.

Gas retailer of last resort

What happens when you are transferred to a retailer of last resort 

If your energy retailer goes out of business, you will be automatically transferred to your retailer of last resort.

Your energy supply will not be disrupted and you do not need to do anything immediately. However, if you, or someone at your premises, require life support equipment, you should contact your new retailer immediately.

Your retailer of last resort will contact you in writing with details. They will explain:

• the start date of the new arrangements
• the terms and conditions of the new contract, including prices.

You can transfer out of this arrangement at any time. You can stay with this retailer by entering a new contract or choose a new retailer that serves your area.

Call your new retailer and ask them to put you on their best market offer. If you are a residential or small business customer using less than 40MWh of electricity or 1,000GJ of gas per year you can use the Victorian Energy Compare website to compare offers from all retailers operating in Victoria.

Electricity pricing and contracts

If you are a residential customer or the aggregate consumption at your supply point has been, or in the case of a new supply point is likely to be, equal to or less than 160 megawatt hours (MWh) of electricity per year, you will be placed on your retailer’s standing offer, also known as the Victorian Default Offer.

If the aggregate consumption at your supply point has been, or in the case of a new supply point is likely to be, more than 160 megawatt hours (MWh) of electricity per year, you will be placed on your retailer’s default contract and pricing.

You are free to transfer at any time from your new retailer to another one who serves your area, or to negotiate a retail contract with your new retailer. If you do not terminate the supply arrangements with the retailer of last resort, or do not enter into a retail contract with them, or do not transfer to a new retailer, the supply arrangements may end after three months (depending on the type of customer you are). If this occurs your retailer may be entitled to disconnect your supply.

Gas pricing and contracts

If you are a residential customer or the aggregate consumption at your supply point has been, or in the case of a new supply point is likely to be, equal to or less than 5,000 GJ, you will be placed on your retailer’s standing offer as published on the retailer’s website.

If the aggregate consumption at your supply point has been, or in the case of a new supply point is likely to be, more than 5,000 GJ of electricity per year, you are required to be placed on a fair and reasonable price by your retailer.

You are free to transfer at any time from your new retailer to another one who serves your area, or to negotiate a retail contract with your new retailer. If you do not terminate the supply arrangements with the retailer of last resort, or do not enter into a retail contract with them, or do not transfer to a new retailer, the supply arrangements may end after three months (depending on the type of customer you are). If this occurs your retailer may be entitled to disconnect your supply.

Customers who had recently transferred to or from the failed retailer

Any customers with pending transfers to the failed retailer will remain with their previous retailer.

If you receive a retailer of last resort notice but had already switched to a new retailer, you should contact the retailer of last resort.

Settling bills from a failed retailer

You will receive a final bill from the failed retailer for energy used up until the transfer to the retailer of last resort.

Under the Energy Retail Code of Practice, if you are a residential or small business customer (using less than 40MWh of electricity or 1,000 GJ of gas per year from a supply point), a failed retailer, or their administrator, is required to immediately cancel all direct debits that are in place, and notify your financial institution of the cancellation. You can contact your financial institution to confirm the cancellation.

The retailer of last resort will then bill you for energy used from the date you are transferred to them. This may be based on an estimated meter read.

Disputed bills

If you were disputing a bill from the failed retailer, you should contact them directly. They or their administrator should have processes in place for handling unresolved customer complaints.

If you are dissatisfied with their response, contact the Energy and Water Ombudsman (Victoria) (EWOV) on 1800 500 509.

Feed-in tariffs

Contact your retailer of last resort if you had a feed-in tariff arrangement with the failed retailer and you do not receive a feed-in credit on your first electricity bill. They will check your eligibility for an ongoing feed-in tariff.

Credits

The failed retailer is required to apply any credits still owed to you to your account or pay the outstanding amount. However, if they are in, or go into, liquidation, you may only receive some, or none, of the money owed.